A hardening insurance market, increased reinsurance costs, the events of 11 September 2001 and overly aggressive price competition by insurers throughout the 1990s have all combined to create a premium ‘crisis’ in the insurance industry.
A decline in competition since HIH/FAI departed from the general liability market provoked a massive rise in premiums by those remaining in the market. The likely departure of UMP from the medical indemnity market will evoke a similar crisis for medical indemnity insurance.
"Queensland emphasises dispute resolution for personal injury claims to resolve premium ‘crisis’,"
ADR Bulletin: Vol. 5
, Article 1.
Available at: http://epublications.bond.edu.au/adr/vol5/iss2/1